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Towards improved prosumer participation: Electricity trading in local markets

: Kühnbach, Matthias; Bekk, Anke; Weidlich, Anke


Energy (2021), Online First, 15 S.
ISSN: 0360-5442
Fraunhofer ISI ()
local energy market; Prosumer; demand response; demand side flexibility

Local energy markets are a promising way to involve prosumers in the electricity system and activate demand-side flexibility. In this paper, we develop a modeling framework consisting of an optimization for prosumer home energy management systems embedded in a local energy market simulation. To enable an integrated assessment, the local market is linked to a central spot market. For each prosumer, we consider the individual flexibility potential, home storage systems, and demand response of electric vehicles. Using this model, we analyze the costs and benefits of a local market for prosumers in an energy system with a high share of renewable energy. We compare the systemic effects and the potential economic benefits of this local market for prosumers to pure self-consumption and prosumer participation in a central spot market. Applying our model to a case study of 480 prosumers, we show that a system including a local market is beneficial compared to self-consumption from a systemic perspective. However, allowing prosumers to participate directly in a central spot market is more profitable and facilitates the system integration of renewables.